Please use this identifier to cite or link to this item: http://hdl.handle.net/1893/9787
Appears in Collections:Accounting and Finance Journal Articles
Peer Review Status: Refereed
Title: Earnings management in Malaysian IPOs: the East Asian crisis, ownership control and post-IPO performance
Authors: Ahmad-Zaluki, Nurwati A
Campbell, Kevin
Goodacre, Alan
Contact Email: kc1@stir.ac.uk
Keywords: Initial public offerings
Earnings management
Ownership structure
Long-run stock market performance
Issue Date: 4-May-2011
Publisher: Elsevier
Citation: Ahmad-Zaluki NA, Campbell K & Goodacre A (2011) Earnings management in Malaysian IPOs: the East Asian crisis, ownership control and post-IPO performance, International Journal of Accounting, 46 (2), pp. 111-137.
Abstract: We find evidence of income-increasing earnings management in Malaysian IPOs, which occurs primarily for IPOs during a period of severe economic stress (the East Asian crisis). Within the high-ownership-concentration Malaysian market, post-IPO control concerns also appear to constrain IPO earnings management: owners seem willing to accept reduced IPO proceeds and signaling opportunities to increase the likelihood of retaining control of the company post-IPO. The requirement to provide a profit guarantee does not seem to greatly affect earnings management. IPO companies engaging in aggressive income-increasing earnings management have significantly worse market-based performance than their more conservative counterparts, but again only for IPOs issued during the economic crisis period. Overall, the results suggest that personal liquidity concerns are an important factor in IPO decisions during the economic crisis.
Type: Journal Article
URI: http://hdl.handle.net/1893/9787
DOI Link: http://dx.doi.org/10.1016/j.intacc.2011.04.001
Rights: Publisher policy allows this work to be made available in this repository. Published in International Journal of Accounting by Elsevier. The original publication is available at http://dx.doi.org/10.1016/j.intacc.2011.04.001
Notes: JEL classification G32
Affiliation: Northern University of Malaysia
Accounting and Finance
Accounting and Finance

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